Motorcycle Insurance Dictionary

All the important terms for you,
defined by motorcyclists.

Vehicle Identification Number (VIN)

open

A unique sequence of letter and numbers used by manufacturers to identify a specific motorcycle.

Uninsured Property Damage "UMPD" Coverage

open

Helps to pay for physical damage caused to your motorcycle by an uninsured driver. This coverage is not available in every state.

Uninsured Motorist "UM" Coverage

open

Helps to pay for medical expenses and lost wages if you’re injured in an incident where the other vehicle operator was at fault and didn’t carry bodily injury liability insurance.

Underinsured Motorist "UIM" Coverage

open

Helps to pay for medical expenses and lost wages if you're injured in an incident where the other operator was at fault but didn't carry enough bodily injury libility insurance.

Total Loss

open

A loss to property that is destroyed or damaged to a point where it cannot be repaired or recovered for future use. A total loss can also mean that the cost to repair or recover the property is more than the value of the property.

Super Sport

open

A type of motorcycle that is designed with advanced technology in order to go faster and be more maneuverable than other motorcycles.

Subrogation

open

When an insurance company attempts to obtain reimbursement from another insurance company or person for a claim it has paid.

Steering Lock

open

Steering Lock: An accessory or built in theft deterrent device that helps immobilize the steering wheel of a vehicle.

Rental Reimbursement Coverage

open

An optional coverage that pays towards rental costs if the insured's motorcycle is either damaged or stolen.

Quote

open

An estimate of what an insurance policy will cost. Quotes are based on information provided by the applicant and include type of motorycle, driving record, location, experience, etc.

Property Damage Liability Coverage

open

Covers the cost to pay for damage caused to someone else's vehicle or other property when the insured is at fault in an accident.

Proof of Loss

open

A formal, official document required by the insurance company when the insured files a claim. The insured provides, (and swears to), the information submitted, inluding the details of the claim and the amount of damages.

Premium

open

The amount of money you pay for an insurance policy.

Physical Damage Insurance

open

Physical Damage Insurance includes Comprehensive and Collision coverages.

Occurence

open

An accident that happened at a specific point in time. To be covered, the date of the occurrence must be within the effective period of the insured's policy.

No-Fault Insurance

open

Some states require that vehicle owners carry a certan amount of coverage for themselves and passengers that will pay for medical expenses and loss of wages, etc., regardless of who is at fault in an accident.

Negligence

open

A failure to use reasonable care that could result in injury to persons or damage to property of others.

Named Insured

open

The person named on the declaration page as the insured person. The named insured is also known as the policy holder.

Medical Payments Coverage

open

Covers reasonable and necessary medical expenses for you, (or anyone operating or occupying the motorcycle with your permission), incurred within one year from the date of the accident.

Loss of Use

open

Reimbursement to cover rental car or transportation costs, for someone other than the insured, whose vehicle is damaged by the insured in a covered loss. This differs from "rental reimbursement" which is a pays towards rental costs if the insured's motorcycle is either damaged or stolen.

Loss

open

Any injury or damage that the insured suffers because of a covered accident or event.

Limits of Liability

open

The maximum amount an insurance company will be required to pay following a covered loss.

Lienholder

open

A bank, credit union, finance company or individual that has legal claim to your motorcycle because they lent you the money to purchase the bike. Lienholders typically require that you carry comprehensive and collision coverages so that they are paid first if the motorcycle is damaged or stolen.

Lien

open

A claim against an owner's property that is used as a security for payment of a debt.

Insured

open

The person or persons covered by an insurance policy.

Installment Payment Plan

open

A method for paying the full premium amount owed by dividing the payments over a period of time.

Immobilizer

open

A form of anti-theft technology that prevents the engine from starting. It works based on electronic communication between the vehicle's engine and the vehicle's key fob.

Identification Card (Proof of Insurance)

open

Your insurance identification card includes your name, policy number, policy period, insurance company information and covered motorcycle. Your ID card can be found at the end of your policy packet, is easy to carry, and is typically used to show certain entities, (police, rental car companies, department of motor vehicles, etc.), that you have an active policy.

Hazard

open

A potential source of damage or harm against someone or something.

First, Second and Third Parties

open

Legal terms used to describe the different people or entities involved in an insurane policy. The first party is the insured, the second party is the insurance company and the third party is the person who claims harm or injury.

Exclusion

open

Items, conditions, risks and sometimes people that are specifically not covered by an insurance policy contract.

Endorsements

open

An amendment to an insurance contract that changes the terms of the originally purchased policy. Also known as a "rider" or "amendment".

Effective Period

open

The period of time when an insurance policy or binder goes into effect through the coverage end date.

Discounts

open

A factor that lowers your insurance premium, such as anti-lock brakes, anti-theft devices, home ownership, and/or safety or education courses.

Depreciation

open

A decrease in your motorcycle's value, generally due to time and wear & tear.

Deductible

open

An amount you will be required to be paid out of pocket following a covered loss.

Declarations/Declarations Page

open

The page included in your insurance policy that summarizes policyholder details, covered motorycle, applicable coverages/limits and premium. The declarations page is located new the front of your policy packet.

Damages

open

Injury or harm caused to an individual or property.

Contributory/Comparative Negligence

open

Contributory negligence is a rule that prevents an injured party from collecting after an accident if they were partially to blame for the accident. Comparative negligence allows for damages to be pro-rated based on each party's percentage of fault.

Comprehensive Coverage

open

Covers damage to an insured motorcycle not caused by collision; due to fire, falling objects, accidental breakage of glass, vandalism, malicious mischief, theft, lightning, explosion, earthquake, windstorm, hail, water, flood or contact with a bird or animal.

Collision Coverage

open

Covers the upset, (tip/turnover), or collision of an insured motorcycle with another object. You, or the other party, can be at fault for this coverage to apply.

Claim

open

A request for payment of a loss, usually made by the insured, to the insurer to pay for damages.

Certificate of Financial Responsibility (SR-22)

open

A certificate that acts as proof of insurance, issued by an insurance company or agent. This certificate is provided to a state licensing department to prove that the policy holder carries the minimum limit of insurance required to operate a motor vehicle. These filings are commonly known as SR-22, SR-44 or CFR and are generally required when there has been a previous inciicent where no insurance or not enough insurance was carried.

Bodily Injury Liability Coverage

open

Coverage that helps pay toward another person's expenses if they are injured by you, (the insured), in a motorcycle accident.

At Fault

open

A term used to identify who caused an accident and a determining factor in who pays for the damages.

Appraisal

open

An expert's opnion of the value of an asset. An appraisal is sometimes required during the claim adjustment process.

Adjuster

open

An individual who investigates, manages and settles claims.

Actual Cash Value, or ACV

open

The fair market value of your motorcycle. It is equal to the cost to replace the bike minus the dollar value of the damage and/or wear-and-tear. For example, a new bike right off the showroom floor will have a higher ACV than a 10-year-old bike that has been in 2 minor accidents and has 10,000 miles on it.